Mylan's woes seen as a benefit for Indian drugmakers

Netherlands-headquartered Mylan’s (Nasdaq: MYL) flagship oral solids facility getting a US Food and Drug Administration warning letter is being viewed as an advantage Indian drug majors. With several big Indian pharmaceutical companies expected to return to double-digit growth riding on a dynamic troika of recovery in sales in the USA, depreciation of the rupee against the dollar, and improving domestic demand, the Mylan episode has further added to this upswing, reports The Pharma Letter’s India correspondent.

Indian pharma companies with significant presence in the US generic market have been grappling with slow growth as a result of intense US generics pricing pressure. As drug companies aim to fill the temporary shortages caused due to regulatory challenges, agile Indian companies are stepping up to the plate.

The slowdown in production at Mylan's Morgantown site is set to provide a window of opportunity for Sun Pharma (BSE: 524715) to the tune of $79 million, Aurobindo Pharma to the tune of $40 million, and for Cadila Healthcare around $35 million, says analyst.